Describe and give an example of a dominant strategy
What will be an ideal response?
A dominant strategy is a game theory option that is better than any alternative option regardless of what the other firm does. Figure 1 (p. 241) is a perfect example of a situation where a company will follow a dominant strategy. For example, Dramco will always choose the international option regardless of Chico’s strategy.
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Countries with high real GDP tend to have ________ infant mortality rates and ________ literacy rates than countries with low real GDP.
A. lower; lower B. lower; higher C. higher; higher D. higher; lower
Entrepreneurs are people who
A) accept ultimate responsibility for the projects they undertake. B) are hired by others to manage business enterprises. C) are hired by others to organize business enterprises. D) own the resources used in the production process. E) prefer a small chance for a large profit to a large chance for a small profit.
If the market price is $3 and a perfectly competitive firm is producing 2,200 units and the marginal cost to produce the 2,200th unit is $2.85, which of the following is true?
A) The firm is maximizing profit. B) The firm should decrease production to maximize profit. C) The difference between marginal revenue and marginal cost (MR - MC) for the 2,200th unit is negative. D) The firm should increase production to maximize profit.
Capitalism
What will be an ideal response?